Intel will release a low-end, low-cost version of the Pentium II late next year that will better compete with AMD and Cyrix chipsets. This new Pentium II will be stripped of its Level 2 (L2) cache, which is normally built into the processor module used by Pentium II CPUs.
Typically, a Pentium II CPU costs about $80 to $100 for Intel to produce, with $20 of that price going to the L2 cache. By eliminating the L2 cache, Intel will be able to bring Pentium II prices down to Pentium levels. The CPU will also use Intel's .25 micron technology, meaning it will be small and cool enough for laptop use.
The only real question about this new CPU, which will likely spell the end of the Pentium/Pentium MMX chips, is how stripping it of L2 cache will affect performance. Intel isn't talking yet